IRS says virtual game currency isn't taxable

The IRS has confirmed in a statement that holdings of virtual game currencies do not need to be disclosed in your tax filings. The statement follows some confusion on the revenue service's stance after it made a change to its website that removed mention of virtual currencies being taxable. Previously the website listed Bitcoin, Ether, Roblox (it probably meant Robux, the currency in Roblox), and Fortnite V-Bucks as examples of “convertible virtual currency” that need to be reported on tax returns.

"The IRS recognizes that the language on our page potentially caused concern for some taxpayers," the agency said. "Transacting in virtual currencies as part of a game that do not leave the game environment (virtual currencies that are not convertible) would not require a taxpayer to indicate this on their tax return."

Not all virtual currencies are created equal — In a comment to Bloomberg Tax, the IRS’ chief counsel Michael Desmond said that the inclusion of video game currencies was a mistake. The issue was “corrected and that was done quickly — as soon as it was brought to our attention,” he said. We imagine some at the IRS do view Bitcoin in the same light as game coins — it's all just funny money, right?

People use real money to buy virtual money — The problem with the taxman leaving virtual currencies alone is people do, in fact, buy and sell them with and for fiat currency, meaning they definitely do have convertible value.

Unsurprisingly, tax experts suggest you speak to a professional accountant if you're unsure about your stash. If you've got a few V-Bucks you're probably fine. If you sold everything you own for them, though, you should probably consult a pro. Because there are only two certainties in life, and one of them is taxation. Unless of course you're very, very rich. In which case only death is inescapable. The rest, with the right accountant, is merely deductible.